Krasnoyarsk Airlines (KrasAir) has failed to sort out problems with jet fuel suppliers in its deport airport of Emelyanovo in Krasnoyarsk. Sibir Avia Service, to which KrasAir still owes 223 million ruble, refused to fill the company’s aircraft yesterday. The parties managed to agree later that day but SAS will transfer a half of all money due for refueling to clear the arrears, providing fuel only for the remaining half.

Owner of refueling facilities in Emelyanovo, Sibir Avia Service (SAS) first halted KrasAir refueling August 11. The reason was the delay in debt payment worth 223 million ruble. Through the intermediary efforts of regional authorities, the parties inked an agreement in late June, whereby the debt of KrasAir wouldn’t exceed 100 million ruble by August 11, SAS General Director Viktor Vityugov explained the reason that promoted SAS to halt refueling.

SAS again refused to refuel KrasAir aircraft yesterday, and the flights were delayed for a few hours. “We don’t want to apply for bankruptcy, as we will get nothing in this case. So, starting from August 18, we decided to collect a half of all payments made by KrasAir to settle the debt, providing the fuel for another half,” Vityugov said, estimating the worth of daily refueling at 10 million rubles on average.

According to Vityugov, KrasAir transferred 6 million ruble to creditor yesterday and the jets were refueled. “Nevertheless, they haven’t paid for refueling next morning’s flights,” the official specified Tuesday night.

People in KrasAir blame the problems on the budget shortage caused by the surge in jet fuel prices. “Having sold tickets for all season in advance, we were unable to set off the abruptly grown demands of jet fuel suppliers. Paying the debt in one go is practically impossible. The airlines has other current liabilities,” said Lyudmila Ganzhurova from KrasAir, pointing out that they transfer all received money to settle the debts to fuel suppliers.